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In Mexico: television and telephone on the same signal

The cable television industry in Mexico is preparing to offer internet telephony services. 35% of its networks are already ready, the rest will be in five years, a period in which 250 million dollars will be invested annually in infrastructure, says Alejandro Puente, president of the National Chamber of the Cable Television Industry (Canitec). Thus, with its signal, in addition to pay TV and internet services, it will be possible to make calls.

It's about taking advantage the potential of the bandwidth available to this industry and its coverage, than reaching many places where it is not possible to see the signal of the public television, and where there are no telephone lines Fixed. In Mexico, out of every 100 homes, only 13 have a telephone, it is estimated that with telephony services by the internet protocol (PI) provided by Canitec, could increase teledensity from 13 to 17%, says Alejandro Puente.

At the moment, Mexico's second largest operator, Megacable, conducts tests in the state of Guadalajara, to transmit voice through a line fixed but by IP. A service that is considered late arrival in Mexico, if you take into account that in the United States there are 2.6 million users of IP telephony, and countries such as El Salvador, Guatemala, Chile and Argentina have also been offering this service for a long time.

Member companies of the Canitec have in the country 76 thousand kilometers of cable already installed. Telmex, the company that dominates in the telephony market voice has 12 thousand kilometers. Alejandro Puente, considers that his Advantage is to reach places where there is no fixed telephony, so they can work as a last-mile service, in alliance with the telephone companies.

In its infrastructure, the main input is the cable and amplifiers, "installations that require minimal modifications" to transmit voice over IP, he says. Bridge. Among its main technology providers are Cisco and Ericcson. Another of its attractions, adds the president of Canitec, is to be a single provider that can offer services in the same signal of video, voice and data.

Possibilities of growth
Luis Balderas, telecommunications research manager at IDC Mexico, market analysis company, considers that despite being a technology emerging in Mexico, it is estimated that internet telephony, from 2003 to 2007, it will have a compound annual growth of the 34 percent. On Canitec's investment plans, he believes that "they are relevant, because of the number of users it has."

But the main ones interested in internet telephony services, "are the companies, which have well defined their communication needs and seek to reduce their expenses, especially on long-distance calls", says José Garcés Rosas, telecommunications research manager of Select, a market analysis company.

In comparison with common telephony, savings percentages with telephony online can be from 30 to 50%. Hence it is a technology attractive to state governments, the financial, tourism and universities, analysts say.

Cablers count with significant coverage, but have no experience in the business market, where telecom operators have an advantage, and no longer consider to internet telephony as a threat, but as a new form to do business. "Thus, rather than seeing themselves as competition, they it would be convenient to ally," says Garcés. The challenge for telephony online, says Balderas, will be to present attractive plans, that do not require a large investment on the part of users.

Convergence begins
The large cable TV companies such as Megacable, Cablemax and Cablecom represent 50 percent of the market in Mexico, which will be next year in a position to offer what is known as "the last mile".

Television companies by cable in Mexico, they already have 180 thousand internet users, of which only about 100 thousand are managed by Megacable. In business of cable television there are 625 companies with 2 million 600 thousand users, but it is estimated that its scope for data transmission and perhaps later voice, it can reach 15 million homes.

For the president of Canitec, technological convergence in Mexico is Starting. At the end of August 2003 they will be presented to the Ministry of Communications and Transport the result of the tests made by Megacable, the ones it trusts will be positive. Like this by 2004 this industry will be ready to offer services of telephony by internet protocol, since almost all companies are ready, because investments and technological modifications that are required are few.

In addition, the Canitec signed with the Secretary of Communications and Transportation to participate in the e-Mexico program, which seeks to bring computers with services from the internet to marginalized and low-income areas, as well as cablers contribute to bring schools and libraries access to the network of networks, with subsidized rates to reinforce this program.

But the challenges with the that the cable television industry in Mexico will continue to fight are piracy and getting the Special Tax on Production and Services (IEPS) be canceled, as President Vicente has already promised Fox

The IEPS, 10 percent for pay television, entered into force on 1 January 2002, after being approved by the Congress of the Union. Alejandro Puente said that when this tax is canceled, the industry will be able to stop the decrease that he had suffered in the last year. "We don't know yet. (how it is going to be given). We are waiting for confirmation of the Presidency and the Ministry of Finance".

La Canitec has 504 dealer partners
-
Reaches 2,380,200 telehomes
- Distributed in 1,395 locations
-
In 786 towns in the country

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